In my short time at Broadvox, I have seen more requests for discounts than at any other business that I have worked. One reason is the number of orders we take in each day, the other is a lack of understanding of our value proposition. Also, I suspect that because the industry is made up of so many different kinds of players, ILECs, CLECs, facilities based carriers, resellers and such, customers believe that we are willing to discount to get business. So how do we, and I mean all of us in the IP community, maintain our pricing in the face of this kind of competition? The answer is rather simple but difficult to implement.
It seems that not enough love is given to VARs. I want to change that. Given our wholesale legacy, it was not obvious that we should sell SIP Trunking using an indirect channel. However, as we performed an analysis of the market and the resources required to penetrate that market it became clear, indirect is the way to go.
"But why you ask?"
I arrived yesterday at Interop to see walk the floors and determine if this show was ready for SIP Trunking. Eighteen months ago, we had a booth at Interop in New York City and the visibility and interest afforded SIP Trunking was bleak. We decided not to attend again until that situation changed. I was disappointed to see it has not changed yet.
Growing up in Virginia on the Chesapeake Bay one of my favorite dishes was stuffed flounder. It was too expensive for my budget so I could only order when I was on a business trip, which for me was quite often. My first job was a research assistant at the Virginia Institute of Marine Science. Most of my summer and a bit of the winter was spent collecting data along Virginia's coastlines.
Everyone wants to say he or she is the best at something. However, given the number of people and companies on the planet saying you are the best is very difficult. Consequently, when I joined Broadvox and was informed we had completed interoperability testing (IOT) with more OEMs than any other carrier, I was skeptical. How could that be?
Last quarter was mostly bad for earnings reported by Nortel, Alcatel-Lucent, Ericsson and others due principally to a slowdown in network equipment purchases. A casual observer of our industry might surmise that not all was well and they would be wrong. Closer examination of the network equipment providers sales numbers shows that products related to IP communications rose quarter over quarter and year over year. That is extraordinary.
IADs are most thought of when we need to attach a TDM PBX or Key System to a VoIP/SIP Service. They range in price from a few hundred dollars to several thousand depending upon the connectivity required and desired features. The most basic functionality needed is to accept an IP or Ethernet connection and convert it into something that the PBX or Key system understands, T1, PRI, FXS, and FXO. Additional capabilities would include QoS, multi-codec support, SIP, MGCP, and H.323 protocols. (I apologize in advance for not having the time to go through each one of the aforementioned protocols.
Wednesday I was running short on time and could not finish the description of the proposed changes to bandwidth utilization pricing. At its core, it is simply a way for the cable companies to increase prices for access to higher speed bandwidth. However, the result may be to push America even further down the list of countries that have broad bandwidth coverage and up the list for the price of our bandwidth. Many others and I believe we need to approach the deployment of broadband with the same strategic intent as we did the interstate highway system. The country will benefit for years to come if deployment is pervasive and its use ubiquitous.